The United States, Mexico, and Canada have reached an agreement to modernize the 24-year-old NAFTA into a 21st century, high-standard agreement. The updated agreement will support mutually beneficial trade leading to freer markets, fairer trade, and robust economic growth in North America.

The U.S. Department of State’s Investment Climate Statements provide country-specific information on the business climates of more than 170 countries and are prepared by economic officers stationed in embassies and posts around the world. They analyze a variety of economies that are or could be markets for U.S. businesses of all sizes.

2018 – Mexico

Executive Summary
Mexico is one of the United States’ top trade and investment partners. Bilateral trade grew 455
percent 1994-2017 and Mexico now ranks as the United States’ second largest export market and
third largest trading partner. Investors in Mexico continue to watch the renegotiation of the
North American Free Trade Agreement (NAFTA) and the July Presidential elections as potential
challenges to the status quo. Uncertainty regarding the content of NAFTA discussions and the
timeline for implementation of the prospective “rules of the game” may impact future foreign
direct investment (FDI) flows, exchange rates, and relative competitiveness. Likewise, there is
some concern the next administration may reverse or limit progress implementing significant
energy, fiscal, social security, education, anti-corruption, security, political, and
telecommunications reforms. Despite this uncertainty, net FDI inflows in 2017 were robust.

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